METLEN Energy & Metals secures €300 million Greece investment approval to expand gallium production, boosting Europe’s critical raw materials supply chain independence.
METLEN Energy & Metals has secured approval from Greece's Interministerial Committee for Strategic Investments for a significant €300 million project aimed at expanding gallium production capacity within the country. This strategic investment, integrated with METLEN's existing bauxite mining and alumina refining operations through its Aluminium of Greece subsidiary, also encompasses the expansion of bauxite mines and the alumina refinery itself. The project has been formally designated as one of strategic importance in the critical raw materials sector, underscoring its national and European significance.
The primary motivation behind this substantial investment is to bolster European industrial supply chains and diminish the continent's reliance on external sources for gallium, aligning with the European Union's broader policy objectives on critical raw materials and strategic autonomy. Gallium is categorized by the EU as a critical raw material, indispensable for a wide array of advanced technologies, including semiconductors, defense applications, artificial intelligence systems, and photovoltaic technologies. Europe has historically been almost entirely dependent on imports, predominantly from China. China's imposition of export restrictions on gallium in July 2023 highlighted this vulnerability, leading to immediate disruptions in global supply chains and a surge in gallium prices by over 40% in Europe. This geopolitical shift underscored the urgent need for Europe to diversify its supply sources and establish domestic production capabilities.
The €300 million investment is expected to receive substantial support, including grants and tax incentives totaling approximately €118 million, under the CISAF 6.1 aid scheme, which received European Commission approval in February 2025. Additionally, the European Investment Bank (EIB) has approved €90 million to support strategic investments in bauxite mining modernization and gallium production. METLEN has ambitious production targets, aiming to scale up to approximately 50 tonnes of gallium annually by 2028, a volume anticipated to largely satisfy Europe's demand for the material. While bauxite production is slated for a 2026 start-up, alumina and gallium production are expected to commence gradually from 2027, reaching full-scale operation by 2028. Notably, METLEN has already achieved a pilot production of the first 5 kilograms of gallium at its facilities.
This project carries significant economic, geopolitical, and industry-specific impacts. Economically, it represents a substantial investment in Greece's industrial landscape, fostering job creation and strengthening the country's position as a key player in the European critical raw materials sector. Geopolitically, it marks a pivotal step towards reducing the EU's strategic vulnerability to supply chain disruptions and enhancing its autonomy in crucial high-tech materials. For the industry, the establishment of Europe's first industrial-scale gallium production facility is crucial for the continued growth and resilience of the semiconductor, defense, AI, and green energy sectors, ensuring a stable domestic supply of a vital component. The integration of gallium production into existing bauxite and alumina operations also highlights a circular economy approach, utilizing a by-product of existing industrial processes.
